Automotive Sector Improves The Better Public Power Purchase

By : Ahmad Fadli And Aldi Firhand. A | Monday, October 02 2017 - 22:07 IWST

Chevrolet
Chevrolet

INDUSTRY.co.id - Jakarta- Bahana Securities believes that the recovery in automotive sales will be an indicator of improved public purchasing power, particularly the middle class.

"A number of positive sentiments began to overshadow the Indonesian economy, the recovery of auto sales and motorcycles in the industry is an indicator of improved public purchasing power," said Plt Head of Research and Strategy Bahana Securities Henry Wibowo, quoting ANTARA, Monday (2/10).

Data from the Association of Indonesian Automotive Industries (Gaikindo) showed that car sales grew 5.6 percent in August 2017 compared to the same period last year or 96,461 units.

Thus, total car sales in the period from January to August were 715,291 units, up 3.8 percent on an annual basis.

Meanwhile, the Indonesian Motorcycle Industry Association (AISI) noted that motorcycle sales rose 5 percent over the same period last year to 554,923 units.

Thus, total motorcycle sales from January to August stood at 3.793 million units.

Bahana estimates that by the end of the year, car and motorcycle sales will be in the range of 3 percent-5 percent. Car sales growth is expected to be better than motorcycle sales due to government-run energy reforms since the beginning of the year.

On the other hand, according to Henry, the move by Bank Indonesia (BI) to cut the BI Rate (BI 7-Day Repo Rate) to 4.25 percent in September will be a boost for the recovery of middle and lower class purchasing power.

"One of the sectors that benefited after BI cut its benchmark interest rate in August and September was the automotive sector, because the purchasing power of middle class people in general bought by installment was quite helpful," he explained.

News Comment

Today's Industry

PT PAL Indonesia

Jumat, 20 April 2018 - 22:26 WIB

Senegal to Buy Tanker and Cargo Ship from PT PAL Indonesia

President Director of PT. PAL Indonesia, Budiman Saleh, confirmed that Senegal will buy a tanker and cargo weighing 18,500 tons.

PT Kimia Farma Tbk (KAEF)

Jumat, 20 April 2018 - 22:20 WIB

Kimia Farma Immediately Develop Online Pharmacies

PT Kimia Farma (Persero) Tbk will develop a business model of online pharmacies while waiting for regulation about the sale of drugs through cyberspace or internet which is currently being brewed…

Director of Kimia Farma Honesti Basyir (left) (Photo Dok Industry.co.id)

Jumat, 20 April 2018 - 22:18 WIB

Kimia Farma is eyeing Middle East-Africa Market

Pharmaceutical SOE PT Kimia Farma (Persero) Tbk plans to expand to international level by entering the market of Middle East region and countries in continent of Africa.

PT Kimia Farma Tbk (KAEF)

Jumat, 20 April 2018 - 22:16 WIB

Kimia Farma to Build Pharmaceutical Factory in Saudi Arabia

PT Kimia Farma (Persero) Tbk increasingly serious to expand its business abroad. Issuers that produce drugs with the code KAEF is planning to build a drug factory in Saudi Arabia.

startup illustration

Jumat, 20 April 2018 - 22:12 WIB

South Korea Ready to Support Indonesia Startup Development

South Korean Ambassador to Indonesia Kim Chang-beom admits ready to support startup development in Indonesia.